10 June 2009

Addressing bureaucracy through PEMUDAH

IN fostering growth of businesses, the government realised the need for acoordinated cross-ministerial initiative to facilitate greater improvement in the way businesses are regulated.
The Special Taskforce to Facilitate Business or PEMUDAH (Pasukan Petugas Khas Pemudah cara Perniagaan) was formed to improve the public sector work processes and establish a conducive business environment.
PEMUDAH facilitates businesses by introducing improvements to existing government processes and regulations, based on public feedback and global benchmarking reports.
Working together with the Companies Commission of Malaysia, the processes required to start a business has been hastened considerably.
If previously registering a new business took three days to process, now the process takes only an hour, while renewal of registration which previously took a day to process is now being done in 15 minutes.
PEMUDAH also improved processes pertaining to land matters, licences, employing expatriates and paying taxes.
In terms of licensing, one of the most significant changes enforced by the taskforce was the issuance of Certificate of Compliance and Completion (CCCs) by professionals to replace Certificate of Fitness for Occupation (CFO).
This exercise reduced the number of steps and time taken in registering property, which affected construction and property business positively.
Another milestone achieved by PEMUDAH in 2007 involved patent registration process for intellectual property which was reduced from three to four years.
Together with Intellectual Property Corporation of Malaysia (MyIPO), PEMUDAH reviewed the patent registration process, which involves six Acts (Trade Mark Act 1976, Patent Act 1983, Copyright Act 1987, Industrial Design Act 1996, Layout Designs and Integrated Circuit Act 2000 and the Geographical Indications Act 2000), which required up to 6 years to complete.
For businesses in need of skilled workers, PEMUDAH also made enhancements to the process of employing expatriates.
After reviewing the existing process, the taskforce and the Department of Immigration successfully set up Executive Counters at all state immigration offices and provided application forms online.
Application process was also reduced to seven days while the work permit tenure was extended from two to five years per renewal.
With the Inland Revenue Board (IRB), PEMUDAH worked at reducing time taken for refunding tax overpaid due to companies from one year to between 14 and 30 days in cases of submissions through e-filing.
Last year, PEMUDAH tackled more issues including trading across borders and government services.
To allow for efficient trading, the taskforce worked toward the release of customs documents based on the vessel's Estimated Time of Arrival as opposed to Actual Time of Arrival for cases where inspection is not required, as well as cargo clearance to be done on weekends and public holidays.
Customs Verification Initiative (CVI) was also introduced by the Royal Malaysian Customs to provide a comprehensive risk management system in verification of cargo.
PEMUDAH's effort also realised a one-stop centre that expedited the incorporation of companies.
Established under the Small and Medium Industries Development Corporation (SMIDEC), now known as SME Corp, the centre features representation of government agencies namely IRB, Companies Commission of Malaysia (SSM), Employees Provident Fund (EPF), Social Security Organisation (SOCSO) and Royal Malaysian Customs (KDRM) along with financial institutions including Malaysian Industrial Development Finance Berhad (MIDF), SME Bank, Bank Simpanan Nasional (BSN) and Credit Guarantee Corporation Malaysia Berhad (CGC).
To further encourage new businesses, charges for incorporating a company was also reduced from RM3,700 to RM2,800 while annual fees was brought down from RM1,850 to RM1,200.
BLESS, or Business Licensing Electronic Support System is another one-stop centre under PEMUDAH.
The virtual centre provides simultaneous processing of multiple licensing involving multiple agencies, composite and standardised forms and online tracking and monitoring tools.
Synergy through BLESS enabled faster turnaround time and improved transparency and accountability.

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